The $40k down is subject to capital gain on the year of closing.2.

Anything falling within that description would be self-dealing and result in severe tax penalties for the IRA.A self-directed IRA allows the IRA to diversify beyond the stock market into assets such as real estate and private lending, but everything is done through the IRA and exclusively for the benefit of the IRA. 

I'm like you on a larger scale but smaller net gains each. 

You would need it to appraise for at least 500k before you would even gain any capital from the refi.

If you sell it, you would get some money now but loose out on the long term rental benefits. 

But what if I gained enough liquid capital to introduce myself to more and more flippers?

I'm a big fan of the benefits of home staging.

I have listed my rental home of 6yrs for sale, our situation me and wife are working and the capital gains tax quite doesn't look correct.

Plenty of benefits.

Most markets have realized a huge gain over the last few years so there is less appreciation coming.